A new study from London-based Nickel Digital Asset Management (Nickel), Europes largest regulated and award-winning digital assets hedge fund manager shows professional investors in the UK expect more crypto/digital investment funds to launch as regulation of the sector improves (please see the attached press release).
The investors, who work for institutional investors, wealth managers, fund managers and hedge funds, are optimistic about the crypto regulatory framework over the next two years with 97% expecting an improvement including 33% who expect it to become significantly more constructive.
Part of the reason for improvements in regulation will be down to the fear of missing out – 93% say the positive attitude to regulation taken by Germany and the UAE will influence other countries to follow suit. However, 90% worry that Germany and the UAE will take a huge leap ahead due to their attitude to regulation.
As well as a rise in the number of crypto/digital investment funds being launched UK investors believe institutional allocations to crypto will rise – more than half (53%) predict pension funds and other institutions will increase allocations.
Increased allocations and investment will increase the pressure on wealth managers from high-net-worth clients to advise on crypto according to 83% of investors while 97% believe wealth managers will lose business if they do not. Almost all (93%) believe the level of advice and education pension fund trustees want will increase.
Nickels research found strong support for digital assets among UK investors – all investors questioned believe they will become mainstream assets while 93% believe that digital assets – in particular DeFi protocols – are emerging as an important disruptive technology for traditional finance.
When asked for their main overarching view on blockchain and digital asset technology, 63% of professional investors said it is scalable and, on the way, to achieving mainstream adoption, while 17% said it bears strong transformative potential for the global economy.